9 May 2014
Asia recap: AUD in retreat as Chinese data disappoints
FXStreet (Barcelona) - Most majors are in retreat as USD gaining strength into the end of the week. EUR is trading on shaky foot across the board as Asian players mulls over Draghi’s comments during his press-conference on Thursday, while JPY is weakening due to improved risk sentiments and Japanese stocks rally from Wednesday’s sell-off.
AUD/USD had to come down to earth after a spectacular rally on Thursday. The pair started the day at 0.9376 and touched current lows at 0.9346 on the back of disappointing Chinese CPI and PPI data that failed to live up to expectations and evidenced that negative trend in both produce price inflation and consumer inflation is here to stay. In April CPI fell to -0.3% m/m and 1.8% y/y, while PPI dropped to -2.0% y/y.
USD/JPY has been making feeble attempts to recover from the support area of 101.50, but manager to climb only to 101.70 so far. Resistance at 101.80 and strong offers on approach to 102.00 won’t let it higher. Though Nikkei moved to positive territory and eased JPY buying pressure, but geopolitical risks have not disappeared into the thin air, thus we may see another bout of JPY buying later during the day.
NZD/USD dipped to 0.8613 early in Asia, but managed to recover losses as currently the pair is trading at the opening level of 0.8646. Kiwi is on the verge of losing its status of best-performing currency of developed world as issues on dairy markets coupled with verbal interventions from RBNZ discourage investors from buying the New Zealand currency.
EUR/USD is sidelined with bearish bias as Asian players react to yesterday’s Draghi press-conference. The pair started the day at 1.3848 and slid to current lows of 1.3831. We may see some profit-taking during the day, though the upside is likely to be limited by 1.3880-1.3900 resistance zone.
">China Consumer Price Index (MoM) registered at -0.3%, missing expectations (-0.1%) in April
China Producer Price Index (YoY) came in at -2% disappointing forecasts (-1.8%) in April
AUD/USD had to come down to earth after a spectacular rally on Thursday. The pair started the day at 0.9376 and touched current lows at 0.9346 on the back of disappointing Chinese CPI and PPI data that failed to live up to expectations and evidenced that negative trend in both produce price inflation and consumer inflation is here to stay. In April CPI fell to -0.3% m/m and 1.8% y/y, while PPI dropped to -2.0% y/y.
USD/JPY has been making feeble attempts to recover from the support area of 101.50, but manager to climb only to 101.70 so far. Resistance at 101.80 and strong offers on approach to 102.00 won’t let it higher. Though Nikkei moved to positive territory and eased JPY buying pressure, but geopolitical risks have not disappeared into the thin air, thus we may see another bout of JPY buying later during the day.
NZD/USD dipped to 0.8613 early in Asia, but managed to recover losses as currently the pair is trading at the opening level of 0.8646. Kiwi is on the verge of losing its status of best-performing currency of developed world as issues on dairy markets coupled with verbal interventions from RBNZ discourage investors from buying the New Zealand currency.
EUR/USD is sidelined with bearish bias as Asian players react to yesterday’s Draghi press-conference. The pair started the day at 1.3848 and slid to current lows of 1.3831. We may see some profit-taking during the day, though the upside is likely to be limited by 1.3880-1.3900 resistance zone.
">China Consumer Price Index (MoM) registered at -0.3%, missing expectations (-0.1%) in April
China Producer Price Index (YoY) came in at -2% disappointing forecasts (-1.8%) in April